Leases

3 Months Ended

Mar. 31, 2019

13.

LEASES

The Company’s operating leases, where the Company is a lessee, include real estate, such as office space and banking centers. Lease expense for operating leases is recognized on a straight-line basis over the term of the lease and is reflected in the consolidated statement of earnings.

While the Company has, as a lessor, certain equipment finance leases, such leases are not material to the Company’s consolidated financial statements.

The following presents the components of lease costs and supplemental information related to leases as of and for three months ended March 31, 2019.

	As of and For the Three Months Ended March 31, 2019
	(Dollars in thousands)
Lease Assets and Liabilities
ROU assets	$	19,809
Total lease liabilities	$	21,450
Lease Cost
Operating lease expense (1)	$	2,100
Sublease income		-
Total lease expense	$	2,100
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	2,746

(1)

Includes short-term leases and variable lease costs, which are immaterial.

Lease Term and Discount Rate
	As of March 31, 2019

Weighted average remaining lease term (years)		4.09
Weighted average discount rate		3.55	%

The Company’s lease arrangements that have not yet commenced as of March 31, 2019 and the Company’s short-term lease costs and variable lease costs, for the three months ended March 31, 2019 are not material to the consolidated financial statements.

The future lease payments required for leases that have initial or remaining non-cancelable lease terms in excess of one year as of March 31, 2019, excluding property taxes and insurance, are as follows:

	As of March 31, 2019
	(Dollars in thousands)
Year:
2019 (excluding the three months ended March 31, 2019)	$	6,083
2020		6,109
2021		4,360
2022		3,091
2023		1,488
Thereafter		1,938
Total future lease payments		23,069
Less: Imputed interest		(1,619	)
Present value of lease liabilities	$	21,450